Posts Tagged ‘mortgage rates’SPECIAL EDITION: Cirios Trends — A Decade in FluxIn this SPECIAL EDITION, check out: The State of the Markets: A Decade in Flux 10 years that were anything but boring.. Home Prices: A Much Needed Breather After a historic rise, an equally historic fall. Getting Back on Track: Are We There Yet? Many believe the bottom in housing has come and gone. Are [...] The State of the Markets: A Decade in FluxThis post first appeared in the SPECIAL EDITION: Cirios Trends: A Decade in Flux The books are officially closed on a decade which will be remembered for an historic real estate boom in the United States that busted in spectacular fashion, nearly taking the entire world financial system down with it. Of course, the real [...] Inflation and Home Prices: Is the Romance Over?This post first appeared in the SPECIAL EDITION: Cirios Trends: A Decade in Flux << PREVIOUS A cursory look at the long term trends for inflation and home prices reveal strikingly similar patterns. Until, that is, right around 2003 (see dotted line below). (click to enlarge image) In the wake of the short recession caused [...] Home Prices vs. Mortgage Rates: Let’s DanceThis post first appeared in the SPECIAL EDITION: Cirios Trends: A Decade in Flux << PREVIOUS It stands to reason that falling interest rates leads to higher home prices. After all, for every one percent drop in mortgage rates, buyers can afford around 10% more house. Against that backdrop, the chart below makes sense: After [...] Do High Mortgage Rates Kill Home Prices?This post first appeared in the SPECIAL EDITION: Cirios Trends: A Decade in Flux << PREVIOUS Given the widespread expectation for future inflation, and as an extension higher interest rates to combat rising prices, the question above is the most common one we hear from home buyers and real estate investors alike. To try and [...] All Bubbles Burst, EventuallyThis post first appeared in the SPECIAL EDITION: Cirios Trends: A Decade in Flux << PREVIOUS The belief that the Federal Reserve kept interest rates too low, for too long, is one which is now nearly universally held. Well, outside the Fed, that is. Here’s a smattering of quotes which show how the view of [...] Historical Macro DataUS Median Home Price 1965-2009 Gray area is “Inflation” period of 1972-1983, 201% total increase in home prices during that 12 year period, or 10.5% annually. (click image to enlarge) Consumer Price Index 1965-2009 Gray area is “Inflation” period of 1972-1983, 147% total increase in CPI during that 12 year period, or 8.5% annually. (click [...] |